Soyabean on NCDEX settled up by 3.27% at 3185 on improved buying in line with rising price at international markets following forecasts of lower-than-expected US output. USDA trimmed its estimate of the US 2016 soybean yield to 52.1 bushels per acre, still an all-time high, but down from its previous figure of 52.5 and below an average of trade estimates for 52.7. The agency also lowered its forecast of US 2016/17 soybean ending stocks to 420 million bushels, from 480 million last month. The United States department of agriculture (USDA) trimmed 2016-17 United States soybean production forecast for January also cut forecast for ending stockpiles compared to previous month, the department said in its World Agriculture Supply and Demand Estimates report. The USDA expects soybean output in US, the world's biggest bean grower, at 117.2 million tons in January compared to 118.7 million tons in the previous month while higher than 106.9 million tons a year ago. USDA also expects 2016-17 US soybean ending stockpiles to fall to 420 million bushels in January compared to 480 million tons in the previous month while higher than 197 million bushels estimated in the same period a year ago. Normal rainfall this year after two consecutive droughts has brought back the expectation of bumper sowing and production of soyabean in India. At the Indore spot market in top producer MP, soybean gained 46 rupee to 3131 rupee per 100 kgs. Technically market is under short covering as market has witnessed drop in open interest by -1.24% to settled at 149750 while prices up 101 rupee, now Soyabean is getting support at 3121 and below same could see a test of 3057 level, And resistance is now likely to be seen at 3221, a move above could see prices testing 3257.

Trading Ideas:

Soyabean trading range for the day is 3057-3257.

Soyabean prices gained on improved buying in line with rising price at international markets following forecasts of lower-than-expected US output.

USDA trimmed its estimate of the US 2016 soybean yield to 52.1 bushels per acre, still an all-time high.

NCDEX accredited warehouses soyabean stocks gained by 2530 tonnes to 158247 tonnes.

At the Indore spot market in top producer MP, soybean gained 46 rupee to 3131 rupee per 100 kgs.